UP Startup Interest Subvention Scheme — 4% Off Loans Up to ₹2 Cr — Frequently Asked Questions

The scheme offers a 4% per annum interest subvention, capped at ₹2 Crore over three years. For each claim period the amount is the lower of 4% of your loan amount or the interest you actually paid, so the final figure depends on your loan size and your interest outgo.

Only term loans taken from a scheduled bank or a recognised financial institution qualify. These are typically medium- to long-term borrowings used for capital expenditure or expansion rather than short-term working capital lines. If your borrowing isn't structured as a term loan from such a lender, it won't be covered.

Your startup must be registered and operating in Uttar Pradesh and must hold a qualifying term loan from a scheduled bank or recognised financial institution. You also need to comply with the wider UP Startup Policy guidelines, since this subvention is an incentive under that policy.

No. This is a government subsidy, not an investment, so no equity, shares or ownership stake is taken in your company. The benefit is non-dilutive and your cap table stays untouched.

No. Applications are accepted on a rolling basis, so the scheme stays open throughout the year. That said, since the subsidy is settled half-yearly, submitting your paperwork promptly keeps your claim cycle on track.

The scheme's own eligibility wording does not explicitly list DPIIT recognition, but DPIIT recognition is among the documents typically requested when claiming benefits under the UP Startup Policy. It is safest to have DPIIT recognition in place before you apply, and to confirm the current requirement with the nodal agency.

You don't receive the subsidy in your own bank account. The amount is credited directly to your lending bank or financial institution on a half-yearly basis, which reduces the interest you owe on the loan. There is no cash handling of the subsidy portion on your side.

Expect to submit your startup's registration certificate, DPIIT recognition, the loan sanction letter, half-yearly interest payment statements issued by the bank, and any other papers the nodal agency asks for. Incomplete or inaccurate documentation is the most common reason a claim gets held up during verification.

Applications go either through the designated portal or by submitting the required documentation to the Uttar Pradesh Startup Nodal Agency or the relevant department handling UP Startup Policy incentives. You can begin at the registration page at https://startinup.up.gov.in/Registration.

UP Startup Interest Subvention Scheme — 4% Off Loans Up to ₹2 Cr is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.